Sellers WANT you now, after years of shunning VA buyers!
It's true, home sellers are eager to accept your offer on their home, even though your choice of financing may cost them more than a conventional buyer. 'Truth is, they may even pay some or all of your closing costs. Home sellers felt quite different, just two or three years ago, as two or ten or more home buyers competed to see who could win a seller's favor in the recent sellers' market. Cash purchases and conventional loans ruled then.
Home buyers rule now! As the home market has tightened on sellers, buyers have been flexing their muscles, and VA loans have been making a comeback. In Anne Arundel County, Maryland, where my office is located, the percentage of VA loans is up for the fifth consecutive month:
Source: Metropolitan Regional Information Systems, Inc. (MRIS)
Why use a VA loan to buy a home? From my perspective as a real estate agent and a VA-financed homeowner myself, there are three primary reasons:
- Little or now down payment
- Ease of qualifying
- No pre-payment penalty
I could write at least a paragraph to clarify each of these reasons, but it would be better for you to consult with a mortgage lender. I do want to make one important point, however - you may be eligible for a VA loan even if you have had one in the past, even if you have one now on another home.
Find out if you are eligible for a VA loan.
Since you can realistically expect to use your VA eligibility to buy a home in this market, you should visit the website for U.S. Department of Veterans Affairs - maybe even before you choose a lender or real estate agent. Here a few links you may find helpful:
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Home Loan Guarantee Services - Home Page for information about VA loans.
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Rules for VA Eligibility - Find out if you qualify, based on your service or your spouse's service.
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Obtaining a Certificate of Eligibility - Complete instructions and forms.
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Frequently Asked Questions about VA Loans - I think this is self-explanatory
Home Sellers, find out How VA Can Help You Sell Your Home.
RELATED LINKS:
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DISCLAIMER: Information contained in this post is deemed reliable on the date of publication, but it is not guaranteed and it is subject to change without notice.
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Margaret Woda, REALTOR and Associate Broker
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Long & Foster Real Estate, Inc., 2191 Defense Hwy., Crofton, MD 21114 (410) 721-1500
Margaret,
Nice post...And this could be the best part for someone selling in the future: An assumable mortgage.
Thanks, Fran
Patricia, isn't that the truth! In my market area, VA can really make a difference, with so many military families.
Fran - Very true, and that will be a big factor for helping people sell when interest rates go up again.
Jesse and Kathy - This is the first time I've used info about financing - it's really a separate topic, in my mind, from the market studies. I do think it's intersting, though to see that the actual # of VA loans has been pretty consistent all year, but the percentage has gone up as as # of sales has gone down.
Katerina - For some reason, it just dawned on me that this is one of the ways I generated a lot of business the last time we had a market like this. People who can't sell their homes to pull out equity, MAY be able to buy VA, making them non-contingent (except for a lease on their current home).